North Carolina Appellate Cases Could Impact Enforceability of HOA Restrictions There are currently three cases pending before the Court of Appeals all asking the same question: does the North Carolina “Marketable Title Act” invalidate planned community restrictive covenants that are more than 30 years old? In 1973, the Legislature enacted Chapter 47B, which is the North Carolina Marketable Title Act. The Act’s stated purpose is: . . .to provide that if a person claims title to real property under …

6 Tips for Budget Season Yes, it’s that time of year again for HOAs. No, not the holiday season—it’s the budget season! Most HOAs use the calendar year as their fiscal year, and now is the time of year that many boards of directors are formulating their budgets for next year. Here are some tips for making the budget and next year’s finances run smoothly and in compliance with North Carolina law. Reserves: analyze the property that the HOA …

Can annual or special meetings proceed in a pandemic? One of the oft-heard concerns of our HOA and condominium clients during the Covid-19 crisis is whether annual or special meetings of the membership may proceed. Boards and members are justifiably worried about violating mass-gathering restrictions, and more importantly, about exposing themselves and their families to Covid-19 health risks.  The foundational principle of HOA and condominium governance is that an informed membership or board makes better decisions after a robust …

Recent Legislation Brings Twin Impacts to Community Associations (Note: this column was written by Hope Carmichael, Esq., CAI-NC Chapter President and fellow of the College of Community Association Lawyers)   Limited Immunity for Pools Gov. Cooper signed HB 902 on July 2, a bill mandating that owners and operators of community pools and their agents shall not be liable in any claim or action seeking damages for injury or death resulting from transmission of COVID-19 alleged to have resulted …

If a Neighbor’s Tree Falls on My House – Who’s Responsible? Over the past couple of years, we have seen an increasing number of old-growth trees being toppled in severe storms.  Homes, cars, fences, and other property have been crushed.  In one recent case, just a few blocks from my home, the resident was killed. We are getting an increasing number of inquiries from our clients about who is responsible for the property damage (or death or injury to …

Court Upholds HOA’s Prohibition on Artificial Grass Homeowners and HOAs appreciate lush grass, but some homeowners got their hands dirty when they put down artificial grass without permission. The North Carolina Court of Appeals in Martin v. The Landfall Council of Associations issued a semi-important (more on this below) opinion regarding the authority of HOAs to enforce architectural requirements and to collect attorney’s fees. The Case: Martin v. The Landfall Council of Associations Here’s the dirt: The Martins owned a home …

COVID-19 Update: The Community Association Institute Calls For Moratorium On HOA Foreclosures The Board of Trustees for the national Community Association Institute has issued a plea for a halt of HOA foreclosures for non-payment of HOA assessments, until June 1.  The current crisis is affecting all of us, and Offit Kurman whole-heartedly agrees with CAI’s request, including that liens should continue to be filed – in anticipation of a jump in consumer bankruptcy filings and other debt collection proceedings.  …

Social Distancing: What Can Your HOA Do for You? The sky appears to be falling, Covid-19 is the topic of the day, all under the dark shadow of a faltering economy.   Many of us are under mandatory orders to stay home and to practice ”social distancing.”  Kids are home from school, and parents are understandably under stress.  Despite the bleak outlook at this time, we will get through this sooner or later, and life will return to normal. One overlooked …

How should community associations handle the Coronavirus? Understandably, Offit Kurman attorneys have been getting a lot of inquiries from our community association clients and management companies on what to do about the COVID-19 virus, how they should respond and communicate to homeowners.  CAI (the Community Association Institute) has published some guidance on its website, along with a sample letter that can be adapted for use to your community associations. https://www.caionline.org/Pages/Coronavirus.aspx Schedule Virtual Meetings HOAs with annual meetings scheduled in …

Is the Developer Running the HOA Correctly? In my HOA law practice, I often hear complaints from homeowners in communities that are still being developed, that the developer is not tending to the affairs of the HOA as it should be.  Many developers view the management of the HOA as an afterthought, instead focusing on development and sales.  In most cases, developers have various tools available to them (all legal) to allow the developer to control the HOA, typically …